Background It is 1960. Under CTP's guidance, EP has become a major worldwide star. In fact, he is the biggest star in the western world. Any impartial person must admit that CTP is a marketing and financial genius. With any other manager, EP would not be near as rich, famous, or successful. Nonetheless, EP is the star, and CTP is merely his manager. Typically, managers/agents earn a small percentage of all income of their clients in this industry, usually in the range of 2- 5%, and occasionally up to 10%. In this case, they agreed that CTP would earn, and has earned, 33% of EP's income since the "partnership" was formed with a handshake in 1955. At that time, EP was merely a part-time truck driver, and a budding singer within the state of Tennessee. When they met, the onus was on EP to convince CTP that the two of them should work together! CTP demanded 33% before he agreed to be EP's manager. It is generally agreed that CTP is among the very best entertainment managers in the world.

In hindsight, and using the principles of UBG (1993), state what the right settlement amount/percentage was, and briefly explain why?